fomc minutes · October 27, 1969

FOMC Minutes

Meeting of Federal Open Market Committee

October 28, 1969

MINUTES OF ACTIONS

A meeting of the Federal Open Market Committee was held in

the offices of the Board of Governors of the Federal Reserve System

in Washington, D. C., on Tuesday, October 28, 1969, at 9:30 a.m.

PRESENT:

Mr.

Martin, Chairman

Hayes, Vice Chairman

Bopp

Brimmer

Clay

Coldwell

Daane

Maisel

Mitchell

Robertson

Scanlon

Sherrill

Messrs. Francis, Heflin, and Swan, Alternate

Members of the Federal Open Market Committee

Messrs. Morris and Kimbrel, Presidents of the

Federal Reserve Banks of Boston and Atlanta,

respectively

Mr. Holland, Secretary

Mr. Broida, Deputy Secretary

Messrs. Kenyon and Molony, Assistant

Secretaries

Mr. Hackley, General Counsel

Mr. Partee, Economist

Messrs. Axilrod, Baughman, Gramley, Green,

Hersey, Solomon, and Tow, Associate

Economists

Mr. Holmes, Manager, System Open Market

Account

Mr. Cardon, Assistant to the Board of Governors

Messrs. Coyne and Nichols, Special Assistants

to the Board of Governors

-2

10/28/69

Mr. Williams, Adviser, Division of Research

and Statistics, Board of Governors

Messrs. Keir and Wernick, Associate Advisers,

Division of Research and Statistics,

Board of Governors

Mr. Bernard, Special Assistant, Office of the

Secretary, Board of Governors

Mr. Wendel, Chief, Government Finance Section,

Division of Research and Statistics, Board

of Governors

Miss Eaton, Open Market Secretariat Assistant,

Office of the Secretary, Board of Governors

Messrs. MacDonald and Strothman, First Vice

Presidents of the Federal Reserve Banks of

Cleveland and Minneapolis, respectively

Messrs. Eisenmenger, Parthemos, Taylor, Jones,

and Craven, Senior Vice Presidents of the

Federal Reserve Banks of Boston, Richmond,

Atlanta, St. Louis, and San Francisco,

respectively

Mr. Hocter, Vice President, Federal Reserve

Bank of Cleveland

Messrs. Garvy and Kareken, Economic Advisers,

Federal Reserve Banks of New York and

Minneapolis, respectively

Messrs. Bodner and Meek, Assistant Vice

Presidents, Federal Reserve Bank of New

York

Mr. Willes, Senior Economist, Federal Reserve

Bank of Philadelphia

Mr. Sandberg, Special Assistant, Securities

Department, Federal Reserve Bank of New

York

By unanimous vote, the minutes of actions taken at the

meeting of the Federal Open Market Committee held on October 7, 1969,

were approved.

The memorandum of discussion for the meeting of the Federal

Open Market Committee held on October 7, 1969, was accepted.

10/28/69

By unanimous vote, the System open market transactions

in foreign currencies during the period October 7 through

October 27, 1969, were approved, ratified, and confirmed.

By unanimous vote, renewal for further periods of three

months, if requested, of the seven swap drawings by the Bank of

England maturing in the period November 10 to December 3, 1969,

was authorized.

By unanimous vote, renewal for further periods of one

year of the following swap arrangements, having the indicated

amounts and maturity dates, was approved:

Foreign bank

Amount of

arrangement

(millions of

dollars)

Austrian National Bank

National Bank of Belgium

Bank of Canada

National Bank of Denmark

Bank of England

Bank of France

German Federal Bank

Bank of Italy

Bank of Japan

Bank of Mexico

Netherlands Bank

Bank of Norway

Bank of Sweden

Swiss National Bank

Bank for International

Settlements:

Dollars against Swiss francs

Dollars against authorized

European currencies other

than Swiss francs

200

500

1,000

200

2,000

1,000

Maturity

of latest

authorized

renewal

1,000

130

300

200

250

600

December

1969

600

December

2, 1969

1,000

December

2, 1969

1,000

10/28/69

By unanimous vote, the open market transactions in Govern

ment securities, agency obligations, and bankers' acceptances

during the period October 7 through 27, 1969, were approved, rati

fied, and confirmed.

By unanimous vote, the Federal Reserve Bank of New York

was authorized and directed, until otherwise directed by the

Committee, to execute transactions in the System Account in

accordance with the following current economic policy directive:

The information reviewed at this meeting indicates

that the pace of expansion in real economic activity was

sustained in the third quarter by an acceleration of

inventory investment, which about offset a further

slackening in growth of private final sales. Slower

over-all growth is projected for the fourth quarter,

although some cross-currents have been evident in the

recent behavior of monthly economic measures. Prices

and costs are continuing to rise at a rapid pace. Most

market interest rates have declined considerably on

balance from their recent highs, in large part because

of changing expectations. In the third quarter, aver

age monthly bank credit declined and the money supply

changed little; in October it appears that bank credit

is decreasing further on average but that the money

supply is growing somewhat. In recent weeks the net

contraction of outstanding large-denomination CD's

slowed markedly, apparently reflecting mainly an

increase in foreign official time deposits, but flows

of consumer-type time and savings funds at banks and

nonbank thrift institutions appear to have remained

relatively weak. The U.S. foreign trade surplus

increased further in September, but the deficit in

the over-all balance of payments was still large on

the liquidity basis and even larger on the official

settlements basis. The appreciation of the German

mark since the end of September, culminating in the

revaluation of the official parity, has led to a

partial reversal of speculative flows, and conditions

in the Euro-dollar market have eased. In light of

-5-

10/28/69

the foregoing developments, it is the policy of the

Federal Open Market Committee to foster financial

conditions conducive to the reduction of inflationary

pressures, with a view to encouraging sustainable

economic growth and attaining reasonable equilibrium

in the country's balance of payments.

To implement this policy, System open market

operations until the next meeting of the Committee

shall be conducted with a view to maintaining the

prevailing firm conditions in money and short-term

credit markets; provided, however, that operations

shall be modified if bank credit appears to be

deviating significantly from current projections.

It was agreed that the next meeting of the Federal Open Market

Committee would be held on Tuesday, November 25, 1969, at 9:30 a.m.

The meeting adjourned.

Secretary

Cite this document

APA

Federal Reserve (1969, October 27). FOMC Minutes. Fomc Minutes, Federal Reserve. https://whenthefedspeaks.com/doc/fomc_minutes_19691028

BibTeX

@misc{wtfs_fomc_minutes_19691028,
  author = {Federal Reserve},
  title = {FOMC Minutes},
  year = {1969},
  month = {Oct},
  howpublished = {Fomc Minutes, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/fomc_minutes_19691028},
  note = {Retrieved via When the Fed Speaks corpus}
}